Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2021 | Nov. 09, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 000-23446 | |
Entity Registrant Name | SUGARMADE, INC. | |
Entity Central Index Key | 0000919175 | |
Entity Tax Identification Number | 94-3008888 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 750 Royal Oaks Dr. | |
Entity Address, Address Line Two | Suite 108 | |
Entity Address, City or Town | Monrovia | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91016 | |
City Area Code | (888) | |
Local Phone Number | 982-1628 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,050,267,683 |
Condensed consolidated Balance
Condensed consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Current assets: | ||
Cash | $ 239,500 | $ 1,396,944 |
Accounts receivable, net | 656,809 | 435,598 |
Inventory, net | 609,457 | 441,582 |
Trading securities, at market value | 809,804 | 1,451,922 |
Other current assets | 218,417 | 182,457 |
Right of use asset, current | 249,464 | 243,406 |
Total current assets | 2,783,452 | 4,151,909 |
Noncurrent assets: | ||
Property, plant and equipment, net | 3,537,202 | 2,749,340 |
Intangible asset, net | 10,648,861 | 10,650,394 |
Goodwill | 757,648 | 757,648 |
Loan receivables, noncurrent | 196,000 | 196,000 |
Right of use asset, noncurrent | 421,557 | 486,253 |
Equity method investments in affiliates | 396,930 | 441,407 |
Total noncurrent assets | 15,958,198 | 15,281,042 |
Total assets | 18,741,650 | 19,432,951 |
Current liabilities: | ||
Note payable due to bank | 25,982 | 25,982 |
Accounts payable and accrued liabilities | 2,185,429 | 2,058,839 |
Customer deposits | 861,906 | 751,919 |
Customer overpayment | 61,964 | 59,953 |
Unearned revenue | 20,265 | 0 |
Other payables | 697,813 | 750,485 |
Accrued interest | 571,570 | 509,997 |
Accrued compensation and personnel related payables | 15,471 | |
Notes payable - Current | 32,041 | 33,047 |
Notes payable - Related Parties, Current | 15,427 | |
Lease liability - Current | 246,682 | 239,521 |
Loans payable - Current | 926,800 | 392,605 |
Loan payable - Related Parties, Current | 46,871 | 163,831 |
Convertible notes payable, Net, Current | 1,182,601 | 1,421,694 |
Derivative liabilities, net | 1,315,913 | 2,217,361 |
Warrants liabilities | 12,753 | 21,042 |
Shares to be issued | 239,577 | 138,077 |
Total current liabilities | 8,428,166 | 8,815,251 |
Non-current liabilities: | ||
Loans payable, noncurrent | 557,362 | 308,588 |
Note payable, noncurrent | 4,928,894 | 4,997,323 |
Convertible notes payable, net, noncurrent | 41,494 | 17,422 |
Lease liability | 456,755 | 524,149 |
Total non-current liabilities | 5,984,505 | 5,847,482 |
Total liabilities | 14,412,671 | 14,662,733 |
Stockholders’ equity: | ||
Common stock, $0.001 par value, 10,000,000,000 shares authorized, 8,438,707,554 and 7,402,535,677 shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively | 8,438,707 | 7,402,536 |
Additional paid-in capital | 72,214,564 | 64,841,654 |
Share to be issued, preferred stock | 5,600,000 | |
Subscription receivable | (500,000) | |
Share to be issued, preferred stock | 40,008 | 1,889,608 |
Accumulated deficit | (75,959,833) | (74,364,466) |
Total stockholders’ equity | 4,735,987 | 4,869,874 |
Non-Controlling Interest | (407,007) | (99,656) |
Total stockholders’ equity | 4,328,979 | 4,770,218 |
Total liabilities and stockholders’ equity | 18,741,650 | 19,432,951 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock value | ||
Series B Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock value | 2,542 | 542 |
Series C Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock value |
Condensed consolidated Balanc_2
Condensed consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Jun. 30, 2021 |
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | |
Common stock, par or stated value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued | 8,438,707,554 | 7,402,535,677 |
Common stock, shares, outstanding | 8,438,707,554 | 7,402,535,677 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 7,000,000 | 7,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,999,999 | 2,999,999 |
Preferred stock, shares issued | 2,541,500 | 541,500 |
Preferred stock, shares outstanding | 2,541,500 | 541,500 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1 | 1 |
Preferred stock, shares issued | 1 | 1 |
Preferred stock, shares outstanding | 1 | 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Revenues, net | $ 1,168,781 | $ 2,146,326 |
Cost of goods sold | 386,939 | 1,028,815 |
Gross profit | 781,842 | 1,117,512 |
Selling, general and administrative expenses | 613,139 | 602,805 |
Advertising and promotion expense | 513,467 | 277,806 |
Marketing and research expense | 35,413 | 222,348 |
Professional expense | 310,500 | 503,430 |
Salaries and wages | 460,424 | 362,524 |
Stock compensation expense | 101,500 | 18,750 |
Total operating expenses | 2,034,443 | 1,987,663 |
Loss from operations | (1,252,601) | (870,151) |
Non-operating income (expense): | ||
Other (expense) income | (4,994) | (51,299) |
Interest expense | (157,911) | (466,774) |
Bad debts | (3,517) | |
Change in fair value of derivative liabilities | 325,234 | 3,495,147 |
Warrant expense | 8,289 | 66,126 |
Loss on settlement | (75,000) | |
Gain on asset disposal | (28) | |
Amortization of debt discount | (132,579) | (814,545) |
Amortization of intangible assets | (1,533) | |
Unrealized gain (loss) on securities | (642,117) | |
Total non-operating expenses, net | (605,640) | 2,150,128 |
Equity Method Investment Loss | (44,477) | |
Net loss | (1,902,718) | 1,279,977 |
Less: net loss attributable to the noncontrolling interest | (307,351) | 1,165 |
Net loss attributable to SugarMade Inc. | $ (1,595,367) | $ 1,278,812 |
Basic net loss per share | $ 0 | $ 0 |
Diluted net loss per share | $ 0 | $ 0 |
Basic and diluted weighted average common shares outstanding * | 4,740,034,036 | 2,422,975,968 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) | Total | Preferred Stock [Member]Series B Preferred Stock [Member] | Preferred Stock [Member]Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Shares To Be Issued Common Shares [Member] | Subscription Receivable Cs [Member] | Common Shares Subscribed [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balance at June 30, 2020 at Jun. 30, 2020 | $ (9,138,871) | $ 3,542 | $ 1,763,278 | $ 57,307,767 | $ 236,008 | $ (68,438,331) | $ (11,136) | |||
Balance, shares at Jun. 30, 2020 | 3,541,500 | 1,763,277,230 | ||||||||
Reclass derivative liability to equity from conversion | 1,805,188 | 1,805,188 | ||||||||
Reclass derivative liability to equity from conversion, shares | ||||||||||
Shares issued for conversions | 1,273,459 | $ 1,081,412 | 192,048 | |||||||
Shares issued for conversions, shares | 1,081,411,606 | |||||||||
Repayment of capital to noncontrolling minority | (24,000) | (24,000) | ||||||||
Net loss | 1,279,977 | 1,278,812 | 1,165 | |||||||
Balance at September 30, 2020 at Sep. 30, 2020 | (4,804,249) | $ 3,542 | $ 2,844,690 | 59,305,003 | 236,008 | (67,159,519) | (33,971) | |||
Balance, shares at Sep. 30, 2020 | 3,541,500 | 2,844,688,836 | ||||||||
Balance at June 30, 2020 at Jun. 30, 2021 | 4,770,218 | $ 542 | $ 7,402,536 | 64,841,655 | 5,600,000 | (500,000) | 1,889,608 | (74,364,466) | (99,656) | |
Balance, shares at Jun. 30, 2021 | 541,500 | 1 | 7,402,535,677 | |||||||
Reclass derivative liability to equity from conversion | 576,214 | 576,214 | ||||||||
Reclass derivative liability to equity from conversion, shares | ||||||||||
Shares issued for conversions | 385,266 | $ 375,600 | 9,665 | |||||||
Shares issued for conversions, shares | 375,600,448 | |||||||||
Shares issued for acquisition | $ 2,000 | $ 660,571 | 6,787,029 | (5,600,000) | (1,849,600) | |||||
Shares issued for acquisition, shares | 2,000,000 | 660,571,429 | ||||||||
Shares issued for subscription receivable - common stock | 500,000 | 500,000 | ||||||||
Shares issued for subscription receivable - common stock, shares | ||||||||||
Net loss | (1,902,718) | (1,595,367) | (307,351) | |||||||
Balance at September 30, 2020 at Sep. 30, 2021 | $ 4,328,979 | $ 2,542 | $ 8,438,707 | $ 72,214,564 | $ 40,008 | $ (75,959,833) | $ (407,007) | |||
Balance, shares at Sep. 30, 2021 | 2,541,500 | 1 | 8,438,707,554 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (1,595,367) | $ 1,278,812 | |
Non-controlling interest | (307,351) | 1,165 | |
Adjustments to reconcile net loss to cash flows from operating activities: | |||
Excess derivative expense | 278,488 | ||
Amortization of debt discount | 132,579 | 814,545 | |
Stock-based compensation | 101,500 | 18,750 | |
Change in fair value of derivative liability | (325,234) | (3,495,147) | |
Change in exercise of warrant | (8,289) | (66,215) | |
Depreciation | 42,138 | 41,617 | |
Amortization of intangible assets | 1,533 | 350 | |
Bad debt | 3,517 | ||
Impairment loss | 44,477 | ||
Unrealized loss on securities | 642,117 | ||
Changes in assets and liabilities: | |||
Accounts receivable | (221,211) | (25,425) | |
Inventory | (167,875) | 73,381 | |
Prepayment, deposits and other receivables | (35,960) | (605,319) | |
Other assets | |||
Other payables | (68,143) | 155,297 | |
Accounts payable and accrued liabilities | 126,590 | (72,594) | |
Customer deposits | 111,998 | 136,814 | |
Unearned revenue | 20,265 | (5,712) | |
Right of use assets | 58,638 | 65,104 | |
Lease liability | (60,233) | (64,401) | |
Interest Payable | 92,238 | 37,640 | |
Net cash used in operating activities | (1,408,591) | (1,429,333) | |
Cash flows from investing activities: | |||
Purchase of fixed assets | (830,000) | (38,594) | |
Net cash used in investing activities | (830,000) | (38,594) | |
Cash flows from financing activities: | |||
Distributions of capital to noncontrolling minority | (24,000) | ||
Loan receivable | (8,979) | ||
Loan receivable - related parties | (2,239) | ||
Proceeds (Repayment) from (to) note payable, net | (69,436) | ||
Proceeds (Repayment) from (to) note payable – related parties, net | (15,427) | ||
Proceeds from advanced shares issuance | 500,000 | ||
Proceeds (Repayment) from (to) loans payable, net | 782,969 | 110,939 | |
Proceeds (Repayment) from (to) loans payable – related parties, net | (116,960) | 619,394 | |
Proceeds from convertible notes | 1,240,900 | ||
Repayment of convertible notes | (228,000) | ||
Net cash provided by financing activities | 1,081,147 | 1,708,015 | |
Net decrease in cash | (1,157,444) | 240,089 | |
Cash paid during the period for: | |||
Cash, beginning of period | 1,396,944 | 441,004 | $ 441,004 |
Cash, end of period | 239,500 | 681,093 | $ 1,396,944 |
Cash paid interest | 81,244 | ||
Supplemental disclosure of non-cash financing activities — | |||
Shares issued for conversion of convertible debt | 576,215 | 1,805,188 | |
Reduction in derivative liability due to conversion | 385,266 | 1,273,460 | |
Debt discount related to convertible debt | $ 918,600 |
Nature of Business
Nature of Business | 3 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business Sugarmade, Inc. (hereinafter referred to as “we”, “us” or “the/our Company”) was originally incorporated on June 5, 1986 in California as Lab, Inc., and later that month, on June 24, 1986 changed its name to Software Professionals, Inc. On May 21, 1996, the Company changed its name to Enlighten Software Solutions, Inc. On June 20, 2007, Enlighten Software Solutions, Inc. was incorporated in Delaware for the purpose of merging with Enlighten Softwear Solutions, Inc. a California Corporation so as to affect a redomicile to Delaware. On January 24, 2008, the Company changed its name to Diversified Opportunities, Inc. On May 9, 2011 we closed on a Share Exchange Agreement with Sugarmade, Inc., a California corporation and on June 24, 2011 changed our name to Sugarmade, Inc. On October 24, 2014 we acquired SWC Group, Inc., a California corporation doing business as, CarryOutSupplies.com (“Carry Out Supplies”). Today, our Company, Sugarmade, Inc. operates much of its business activities through our subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), NUG Avenue, Inc., a California corporation (“NUG Avenue”), and Lemon Glow Company, Inc., a California corporation (“Lemon Glow”). Sugarmade, Inc. was founded in 2010. Shares of our common stock are quoted on the OTC Pink Open Market tier of OTC Markets, which is a quotation system for early-stage and developing companies. Our trading symbol is “SGMD”. Our corporate website is www.sugarmade.com. As of the date of this filing, we are involved in several business sectors and business ventures: Paper and paper-based products: NUG Avenue, Inc. investment into licensed cannabis delivery in Los Angeles area markets. 70 We believe our investment into NUG Avenue will allow us to expand our presence into the licensed and regulated cannabis marketplace. The California cannabis market continues its rapid growth, with the Southern California sub-market representing the world’s largest single cannabis marketplace. According to the California Department of Tax and Fee Administration, the most recently reported quarterly period posted a significant increase in cannabis tax compared to the year-ago period. Much of this growth was driven by increased use of delivery services, as consumers are increasingly relying on home delivery for many goods, including cannabis. Cannabis products delivery service and sales: 505,449 40 59,370 32 396,930 44,477 Selected cannabis and hemp projects: Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. These interim condensed consolidated financial statements should be read in conjunction with our Company’s Annual Report on Form 10-K for the year ended June 30, 2021, which contains our audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the fiscal year ended June 30, 2021. The interim results for the period ended September 30, 2021 are not necessarily indicative of the results for the full fiscal year. Principles of consolidation The unaudited condensed consolidated financial statements include the accounts of our Company, its wholly-owned subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), Lemon Glow Company, Inc., a California corporation (“Lemon Glow”), and its majority owned subsidiary, NUG Avenue, Inc., a California corporation (“Nug Avenue”), as well as Indigo Dye Group Corp., a variable interest entity (“VIE”). All significant intercompany transactions and balances have been eliminated in consolidation. Going concern The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required. Our unaudited condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Management endeavors to increase revenue-generating operations. While the Company’s priority is on generating cash from operations, management also seek to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced, and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock. Business combinations The Company applies the provisions of Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. The Company used third party valuation company to determine the assets acquired and liabilities assumed with the corresponding offset to goodwill. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) Use of estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Revenue recognition We recognize revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC’’) No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer. Property and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 5 Furniture and equipment 7 Vehicles 5 Leasehold improvements 30 Building 31.5 Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, there was $ 0 43,800 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Intangible assets represent purchased intangible assets including developed technology and in-process research and development, technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames. Purchased finite-lived intangible assets are capitalized and amortized over their estimated useful lives. Technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement, or estimated useful life. We capitalize cannabis cultivation license acquired as part of a business combination. Stock based compensation Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk-free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. Earnings ( Loss) per share We calculate basic earnings (loss) per share (“EPS”) by dividing our net income (loss) by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income or net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive. Fair value of financial instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the three months ended September 30, 2021. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) Derivative instruments The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. Segment Reporting FASB ASC Topic 280, “Segment Reporting’’, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in three industry segments – (1) paper and paper-based products such as paper cups, cup lids, food containers, etc., which accounts for approx. 38% of the Company’s revenues as of September 30, 2021; (2) Cannabis products delivery service and sales, which accounts for approx. 62% of the Company’s total revenues as of September 30, 2021. A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for September 30, 2021 and 2020 is as follows: Schedule of Segment Operating Income Three months ended September 30, 2021 September 30, Segment operating income Paper and paper-based products $ 438,543 $ 574,970 Cannabis products delivery 730,237 1,571,356 Total operating income $ 1,168,781 $ 2,146,326 New accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will be effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. We are still evaluating the impact this guidance will have on our consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The Company have adopted this ASU on the consolidated financial statements in the year ended June 30, 2021. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and three months ended September 30, 2021. In August 2020, the FASB issued ASU 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) ASU 2020-06 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Concentration
Concentration | 3 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration | 3. Concentration Customers For the three months ended September 30, 2021 and 2020, our Company earned net revenues of $ 1,168,781 2,146,326 Suppliers For the period ended September 30, 2021, we purchased products for sale by the Company’s subsidiary from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory was purchased from two (2) suppliers. The two suppliers accounted for 25.5 % and 16.20 %, respectively, of the Company’s total inventory purchase for the period ended September 30, 2021. |
VIE
VIE | 3 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VIE | 4. VIE On February 7, 2020, the Company entered into a share sale and purchase agreement (the “Indigo Agreement”) with Indigo Dye Group Corp. (“Indigo”), a corporation located in Sacramento, California. Indigo carries on business as a cannabis seller and delivery business under the name BudCars. The major Cannabis Products include Flower, Edibles, Vape Cartridges, Pre-Rolls, & Concentrates, etc. All the products are finished goods. In addition, Indigo is operating a non-store front retail delivery business (Type-9 License# C9-0000286) in California. Pursuant to the terms of the Indigo Agreement, the Company agreed to invest $ 700,000 The Investment shall be made in twelve monthly equal installments of $ 58,333 In exchange, the Company received 40% of Indigo’s issued shares upon execution of the final agreement. The value used for this transaction is $1,750,000 and each percentage (1%) of the company is worth $17,500. In the event that the Company is not able to make a payment of $58,333 in any month, it will have 90 days to cure the default. In addition, subject to the terms and conditions of the Indigo Agreement, the Company has the option to acquire an additional 30 From late May 2020 until September 30, 2020, the Company was actively involved in development of Indigo’s operations with power to direct the activities and significantly impact Indigo’s economic performance. The Company also has obligations to absorb losses and right to receive benefits from Indigo. As such, in accordance with ASC 810-10-25-38A through 25-38J, Indigo is consolidated as an VIE of the Company. Starting on October 1, 2020, the Company began to explore new locations via purchasing equity into other Brand/Franchises to cover delivery for the entire state of California. Therefore, the Company is not likely to proceed with the option to acquire the additional 30 the Company continues to hold approximately 32 564,819 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Noncontrolling Interest and Dec
Noncontrolling Interest and Deconsolidation of VIE | 3 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest And Deconsolidation Of Vie | |
Noncontrolling Interest and Deconsolidation of VIE | 5. Noncontrolling Interest and Deconsolidation of VIE Starting in fiscal year ended June 30, 2020, the Company had a variable interest entity, Indigo Dye Group, for accounting purposes. The Company owned approximately 29 Starting on October 1, 2020, the Company planned to open new locations via purchasing equity in other Brand/Franchises to cover delivery for the entire California. Therefore, the Company is not likely at this time to exercise its option to acquire the additional 30 505,449 40% 59,370 32% The net asset value of the Company’s variable interest in Indigo Dye Group was approximately $ 326,812 313,928 396,930 441,407 44,477 123,412 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 6. Legal Proceedings From time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of September 30, 2021, there were no legal claims pending or threatened against the Company that, in the opinion of our management would be likely to have a material adverse effect on our financial position, results of operations or cash flows. However, as of the date of this filing, we were involved in the following legal proceedings. ● On December 11, 2013, the Company was served with a complaint from two convertible note holders and investors in the Company. On February 21, 2017, the Company signed a settlement agreement with the plaintiffs in the matter of Hannan vs. Sugarmade. Under the terms of the settlement agreement, the company agreed to pay the plaintiffs $ 227,000 80,000 227,000 80,000 There can be no assurances the ultimate liability relative to these lawsuits will not exceed what is outlined above. |
Cash
Cash | 3 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash | 7. Cash Cash and cash equivalents consist of amounts held as bank deposits and highly liquid debt instruments purchased with an original maturity of three months or less. From time to time, we may maintain bank balances in interest bearing accounts in excess of the $ 250,000 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
Accounts Receivable | 8. Accounts Receivable Accounts receivable are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customer’s deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time, any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. The Company had accounts receivable, net of allowance, of $ 656,809 435,598 581,039 259,761 |
Loans Receivable
Loans Receivable | 3 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans Receivable | 9. Loans Receivable Loan receivables amounted $ 196,000 ($ 0 current and $ 196,000 noncurrent) and $ 196,000 ($ 0 current and $ 196,000 noncurrent) as of September 30, 2021 and June 30, 2021, respectively. Loan receivables are mainly advanced payments to the other companies. |
Inventory
Inventory | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | 10. Inventory Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company’s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence. If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of September 30, 2021 and June 30, 2021, the balance for the inventory totaled $ 609,457 and $ 441,582 , respectively. $ 0 was reserved for obsolescent inventory for the period ended September 30, 2021, and $ 0 were reserved for obsolescent inventory for the year ended June 30, 2021. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Other Current Assets
Other Current Assets | 3 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | 11. Other Current Assets As of September 30, 2021 and June 30, 2021, other current assets consisted of the following: Schedule of Other Current Assets For the period ended September 30, June 30, Prepaid Deposit $ 141,776 $ 113,988 Prepaid Inventory 49,433 — Prepaid Expenses 19,673 35,590 Undeposited Funds 7,535 — Other — 32,879 Total: $ 218,417 $ 182,457 |
Intangible Asset
Intangible Asset | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Asset | 12. Intangible Asset On April 1, 2017, the Company entered into a distribution and intellectual property assignment agreement with Wagner Bartosch, Inc. (“Wagner’’) for use of their Divider’™ used in frozen desserts and other related uses. In lieu of cash payment under the agreement, the Company was obliged to issue common shares of the Company valued at $ 75,000 for acquiring the use right of the distribution and intellectual property. The Company amortized this use right as intangible asset over ten years , and recorded $ 1,533 and $ 1,400 amortization expense for the period ended September 30, 2021 and June 30, 2021, respectively. On May 17, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and between Carnaby Spot Bay Corp, a California corporation and a wholly owned subsidiary of the Company (“Merger Sub”), Lemon Glow Company, a California corporation (the “Lemon Glow”) and Ryan Santiago (the “Shareholder Representative”), pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub would merge with and into Lemon Glow, with Lemon Glow being the surviving corporation (the “Merger”). The Company valued the cannabis cultivation license from Lemon Glow at $ 10,648,861 with remaining economic life of 9 years as of June 30, 2021. The intangible assets have not started to amortize as of September 30, 2021. |
Goodwill
Goodwill | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 13. Goodwill Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. The fair values of net tangible assets and intangible assets acquired are based upon preliminary valuations and the Company’s estimates and assumptions are subject to change within the measurement period. There was $ 757,648 757,648 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 3 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | 14. Property, Plant and Equipment, net As of September 30, 2021 and June 30, 2021, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment Fixed Assets September 30, June 30, Office and equipment $ 820,149 $ 820,149 Motor vehicles 165,579 166,079 Land 2,554,767 1,922,376 Building 197,609 — Leasehold Improvement 365,620 365,620 Total 4,103,725 3,274,224 Less: accumulated depreciation (566,523 ) (524,884 ) Property, Plant and Equipment, net $ 3,537,202 $ 2,749,340 For the periods ended September 30, 2021 and June 30, 2021, depreciation expenses amounted to $ 41,639 and $ 105,982 , respectively. The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no Sugarmade, Inc. and Subsidiary Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Equity Method Investments in Af
Equity Method Investments in Affiliates | 3 Months Ended |
Sep. 30, 2021 | |
Investments in and Advances to Affiliates [Abstract] | |
Equity Method Investments in Affiliates | 15. Equity Method Investments in Affiliates Investment to Indigo Dye Inc. For the fiscal year ended June 30, 2020, the Company accounted for its investment in Indigo Dye Group as a variable interest entity. The Company owned approximately 29% During quarter ended December 31, 2020, the Company began plans to open new locations via purchasing equity in other Brand/Franchises to cover delivery for the entire California. Therefore, the Company is not likely at this time to exercise its option to acquire the additional 30% interest in Indigo. In addition, the Company is no longer involved in day-to-day operations of Indigo and going forward, the Company intends to pursue cannabis delivery independent from Indigo. As of October 1, 2020, the Company ceased to have control over the day-to-day business of Indigo and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting 40% 43,800 32% As of September 30, 2021, the Company recorded equity method investment in affiliates at $ 396,930 44,477 |
Unrealized Gain on Securities
Unrealized Gain on Securities | 3 Months Ended |
Sep. 30, 2021 | |
Unrealized Gain On Securities | |
Unrealized Gain on Securities | 16. Unrealized Gain on Securities In October 2019, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with iPower Inc., formerly known as BZRTH Inc. (the “Company”), a Nevada corporation, pursuant to which, among other things, the Company agreed to buy 100% 870,000 7,130,000 650,000 3,500,000 Due to certain disputes that arose between the parties with respect to certain terms and conditions contained in the Share Exchange Agreement, the parties entered into a Rescission and Mutual Release Agreement on January 15, 2020 (the “Rescission Agreement”). Pursuant to the terms of the Rescission Agreement, iPower Inc. and its stockholders returned the shares of Sugarmade common stock and preferred stock and issued to Sugarmade 102,248 204,496 1,451,922 For the years ended September 30, 2021 and June 30, 2021, unrealized gain on securities amounted at current market value of $ 809,804 and $ 1,451,922 , respectively. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Unearned Revenues
Unearned Revenues | 3 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Unearned Revenues | 17. Unearned Revenues Unearned revenue amounted to $ 20,265 0 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | 18. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities amounted $ 2,185,429 and $ 2,058,839 as of September 30, 2021 and June 30, 2021, respectively. Accounts payables are mainly payables to vendors and accrued liabilities are mainly accrued interest of convertible notes payables and accrued contingent liabilities. Schedule of Accounts Payable and Accrued Liabilities September 30, June 30, Accounts payable $ 1,569,139 $ 1,464,692 Accrued liabilities 354,213 310,528 Contingent liabilities 262,077 283,619 Total accounts payable and accrued liabilities: $ 2,185,429 $ 2,058,839 |
Other Payables
Other Payables | 3 Months Ended |
Sep. 30, 2021 | |
Other Payables | |
Other Payables | 19. Other Payables Other payables amounted $ 697,813 750,485 8 no 85,000 11.24% 29.99% |
Customer Deposits
Customer Deposits | 3 Months Ended |
Sep. 30, 2021 | |
Customer Deposits | |
Customer Deposits | 20. Customer Deposits Customer deposits amounted $ 861,906 and $ 751,919 as of September 30, 2021 and June 30, 2021, respectively. Customer deposits are mainly advanced payments from customers. |
Convertible Notes
Convertible Notes | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 21. Convertible Notes As of September 30, 2021 and June 30, 2021, the balance owing on convertible notes, net of debt discount, with terms as described below was $ 1,224,095 1,439,116 Convertible notes issued prior to the year ended June 30, 2021 were as follows: Convertible note 1: On August 24, 2012, the Company entered into a convertible promissory note with an accredited investor for $ 25,000 6 10% 25% Convertible note 2: On September 18, 2012, the Company entered into a convertible promissory note with an accredited investor for $ 25,000 6 10% 25% Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 Convertible note 3: On December 21, 2012, the Company entered into a convertible promissory note with an accredited investor for $ 100,000 6 10% 25% Convertible note 4: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $ 40,000 one year 8% 0.07 Convertible note 5: On December 3, 2018, the Company entered into a convertible promissory note with an accredited investor for $ 35,000 one year 8% 0.07 Convertible note 6: On October 31, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 139,301 360 8% 0.008 60% 20 Convertible note 7: On November 1, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 100,000 360 8% 0.008 60% 20 Convertible note 8: On September 8, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 110,000 10,000 180 12% 0.01 65% 20 Convertible note 9: On September 10, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 227,700 20,700 7,000 360 8% 60% 20 117,700 7,352 90,167,551 Convertible note 10: On September 24, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 212,300 19,300 180 12% 0.01 65% 20 Convertible note 11: On October 8, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 231,000 21,000 180 12% 0.01 65% 20 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 Convertible note 12: On October 13, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 275,000 25,000 180 12% 0.01 65% 20 Convertible note 13: On November 10, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 58,300 5,300 360 8% 60% 20 Convertible note 14: On February 8, 2021, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 69,300 6,300 360 8% 60% 20 Convertible note 15: On June 14, 2021, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 300,000 three years 1% 0.0036 85% 5 In connection with the convertible debt, debt discount balance as of September 30, 2021 and June 30, 2021 were $ 258,507 391,086 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Derivative liabilities
Derivative liabilities | 3 Months Ended |
Sep. 30, 2021 | |
Derivative Liabilities | |
Derivative liabilities | 22. Derivative liabilities The derivative liability is derived from the conversion features in note 22 and stock warrant in note 24. All were valued using the weighted-average Binomial option pricing model using the assumptions detailed below. As of September 30, 2021 and June 30, 2021, the derivative liability was $ 1,315,913 and $ 2,217,361 , respectively. The Company recorded $ 325,234 loss and $ 1,087,485 gain from changes in derivative liability during the periods ended September 30, 2021 and June 30, 2021, respectively. The Binomial model with the following assumption inputs: Schedule of Binomial Model Assumptions Inputs June 30, Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % September 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.05 0.53 % Expected Volatility 127 234 % Fair value of the derivative is summarized as below: Schedule of Fair Value of Derivative Beginning Balance, June 30, 2021 $ 2,217,361 Additions $ — Mark to Market $ (325,234 ) Cancellation of Derivative Liabilities Due to Cash Repayment $ — Reclassification to APIC Due to Conversions $ (576,214 ) Ending Balance, September 30, 2021 1,315,913 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Stock warrants
Stock warrants | 3 Months Ended |
Sep. 30, 2021 | |
Stock Warrants | |
Stock warrants | 23. Stock warrants On September 7, 2018, the Company entered into a settlement agreement with several investors to settle all disputes by issuing additional unrestricted shares. In connection with the note each individual investor will also receive warrants equal to the number of the shares the investors own as of the effective date of the settlement agreement. The warrants have a life of five years with an exercise price as of the date of exchange. The fair value of the warrants at the grant date was $ 56,730 . As of September 30, 2021 and June 30, 2021, the fair value of the warrant liability was $ 753 and $ 1,042 , respectively. On February 4, 2020, the Company entered into a warrant agreement with an accredited investor for up to 10,000,000 0.008 five years 80,000 12,000 20,000 As of September 30, 2021 and June 30, 2021, the total fair value of the warrant liability was $ 12,753 21,042 |
Note payable
Note payable | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Note payable | 24. Note payable Note Payable Due to Bank During October 2011, we entered into a revolving demand note (line of credit) arrangement with HSBC Bank USA, with a revolving borrowing limit of $ 150,000 0.25% 5.5% In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate 25,982 25,982 Notes Payable Due to Non-related Parties On June 15, 2018, the Company entered into a promissory note with an accredited investor. The original principal amount was $ 20,000 8% 32,041 33,047 On October 6, 2020, the Company entered into a promissory note with Darryl Kuecker, and Shirley Ann Hunt (the “Trustee”) for borrowing $ 1,390,000 6% 30 years 36% 64% monthly basis 8,333 3,000 5,333 1,373,872 1,378,222 On May 12, 2021, the Company entered into a promissory note with Lemon Glow Shareholders. The original principal amount was $ 3,976,000 5% 36 3,556,000 3,626,000 Notes Payable Due to Related Parties On January 23, 2013, the Company entered into a promissory note with a former employee of the Company. The original principal amount was $ 40,000 0 15,427 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 25. Related Party Transactions On January 23, 2013, SWC received a loan from an employee for $ 40,000 0 15,427 On July 7, 2016, SWC received a loan from an employee. The amount of the loan bears no interest and amortized on a monthly basis over the life of the loan. As of September 30, 2021 and June 30, 2021, the balance of the loans payable were $ 0 49,447 On November 21, 2016, SWC received a loan from an employee. The amount of the loan bears no interest and due in September 30, 2017 0 83,275 On May 25, 2021, Lemon Glow received a loan from an officer. The amount of the loan bears no interest and due on demand. As of September 30, 2021 and June 30, 2021, the balance of the loans were $ 0 3,000 As of September 30, 2021 and June 30, 2021, the Company had an outstanding balance of $ 46,871 179,258 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Loans payable
Loans payable | 3 Months Ended |
Sep. 30, 2021 | |
Loans Payable | |
Loans payable | 26. Loans payable On October 1, 2017, SGMD entered a straight promissory note with Greater Asia Technology Limited (Greater Asia) for borrowing $ 100,000 June 30, 2018 33.33% 49,541 49,541 During the year ended June 30, 2019, the Company entered a series of short-term loan agreements with Greater Asia Technology Limited (Greater Asia) for borrowing $ 375,000 40% 50% 100,000 100,000 On July 1, 2012, SWC entered an equipment loan agreement with a bank with maturity on June 21, 2024 648 16,805 16,805 On July 28, 2020, we entered into a loan borrowed $ 159,900 from Bank of America (“Lender”), pursuant to a Promissory Note issued by Company to Lender (the “PPP Note”). The loan was made pursuant to the Payroll Protection Program established as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Note bears interest at 3.75% per annum and may be repaid at any time without penalty. Installment payments, including principal and interest, of $ 731 500,000 and the monthly payment amount has been updated from $ 731 2,527 On January 25, 2021, we entered into a loan borrowed $ 96,595 1.00% The Company accounting for the PPP loan under Topic 470: (a). Initially record the cash inflow from the PPP loan as a financial liability and would accrue interest in accordance with the interest method under ASC Subtopic 835-30; (b). Not impute additional interest at a market rate; (c). Continue to record the proceeds from the loan as a liability until either (1) the loan is partly or wholly forgiven and the debtor has been legally released or (2) the debtor pays off the loan; (d). Would reduce the liability by the amount forgiven and record a gain on extinguishment once the loan is partly or wholly forgiven and legal release is received. On February 15, 2021, the Company entered a promissory note with Manuel Rivera for borrowing $ 100,000 September 15, 2021 3,500 7 The Company shall pay the investor a fee of $70,000 within 45 days of its first harvest. 100,000 100,000 On March 24, 2021, the Company entered into auto loan agreement with John Deere Financial for an auto loan of $ 69,457 60 2.85% 61,010 65,726 On August 4, 2021, the Company entered into a loan with Coastline Lending Group of $ 490,000 3,471 36 months 8.5% August 14, 2024 490,000 As of September 30, 2021 and June 30, 2021, the Company had an outstanding loan balance of $ 1,484,162 and $ 701,193 , respectively. |
Loans Payable _ Related Parties
Loans Payable – Related Parties | 3 Months Ended |
Sep. 30, 2021 | |
Loans Payable Related Parties | |
Loans Payable – Related Parties | 27. Loans Payable – Related Parties On July 7, 2016, SWC received a loan from an employee. The amount of the loan bears no interest and amortized on a monthly basis over the life of the loan. As of September 30, 2021 and June 30, 2021, the balance of the loan were $ 0 49,447 On November 21, 2016, SWC received a loan from a former independent consultant. The amount of the loan bears no interest and due in September 30, 2017 0 83,275 On May 25, 2021, Lemon Glow received a loan from an officer. The amount of the loan bears no interest and due on demand. As of September 30, 2021 and June 30, 2021, the balance of the loans was $ 0 3,000 On September 1, 2017, the Company had related party transaction with LMK Capital LLC, a related party company owned by Jimmy Chan, the Company’s CEO. The amount of the loan payable/receivable bears no interest and is due on demand. As of September 30, 2021 and June 30, 2021, the balance of the loan payable to LMK were $ 46,871 26,452 0 0 As of September 30, 2021 and June 30, 2021, the Company had an outstanding related party loan balance of $ 46,871 163,831 |
Shares to Be Issued
Shares to Be Issued | 3 Months Ended |
Sep. 30, 2021 | |
Shares To Be Issued | |
Shares to Be Issued | 28. Shares to Be Issued As of September 30, 2021 and June 30, 2021, the Company had entered into one consulting service agreement and one employment agreement, which had potential shares to be issued in total amount of $ 239,577 and $ 138,077 , respectively. During the three months ended September 30, 2021, the Company had potential shares to be issued to the consulting agreement of $ 36,500 and to the employment agreement of $ 203,077 . Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Stockholder_s Equity
Stockholder’s Equity | 3 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholder’s Equity | 29. Stockholder’s Equity The Company is authorized to issue 10,000,000,000 .001 10,000,000 .001 10,010,000,000 10,000,000,000 0.001 10,000,000 0.001 Share issuance during the three months ended September 30, 2021 During the three months ended September 30, 2021, the Company issued 375,600,448 385,266 During the three months ended September 30, 2021, the Company issued 660,571,429 1,849,600 During the three months ended September 30, 2021, the Company issued 2,000,000 5,600,000 As of September 30, 2021 and June 30, 2021, the Company had 8,438,707,554 7,402,535,677 As of September 30, 2021 and June 30, 2021, the Company had 2,541,500 541,500 As of September 30, 2021 and June 30, 2021, the Company had 1 1 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 30. Commitments and contingencies On February 23, 2018, the Company entered into lease agreement for a new office space as part of the plan to expand operation, the lease commenced on March 1, 2018. The term of the lease is for five ( 5 st 11,770 3% 737,367 The Company’s warehouse along with ancillary office space is located at 20529 East Walnut Drive North, Diamond Bar, California, where we lease approximately 11,627 13,022 On February 1, 2021, the Company entered into lease agreement with Magnolia Extracts, LLC dba Nug Ave-Lynwood, a California limited liability company for a certain regulatory permit issued by the City of Lynwood authorizing commercial retailer non-storefront operations at 11118 Wright Road, Lynwood, CA 90262. The lease was set to commence on February 1, 2021. The lease payment shall equal $10,000 per month and the lease term is on month-by-month basis. Parties have agreed that the first month’s rent payment shall equal $7,000 and the Company owed the landlord a refundable security deposit of $20,000 within 10 days of the commencement date. Schedule of Supplemental Disclosures Related to Operating Lease Three Months Ended September 30, 2021 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 77,231 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three months ended September 30, 2021 $ 58,639 Remaining lease term – operating leases (in years) 2.5 Average discount rate – operating leases 10 % The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Short-term right-of-use assets $ 249,464 Long-term right-of-use assets $ 421,557 Total operating lease assets $ 671,021 Short-term operating lease liabilities $ 246,682 Long-term operating lease liabilities $ 456,755 Total operating lease liabilities $ 703,437 Maturities of the Company’s lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Operating Period ending September 30, 2021 Lease 2022 $ 307,405 2023 234,925 2024 172,465 2025 103,476 Total lease payments 818,270 Less: Imputed interest/present value discount (114,833 ) Present value of lease liabilities $ 703,437 |
Subsequent events
Subsequent events | 3 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | 31. Subsequent events Shares issued for cash On October 13, 2021, the Company entered into a stock subscription agreement to issue 200,000,000 240,000 On October 28, 2021, the Company entered into a stock subscription agreement to issue 169,999,999 204,000 Shares issued for conversion On November 12, 2021, there was one note holder converted $ 150,000 214,285,714 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. These interim condensed consolidated financial statements should be read in conjunction with our Company’s Annual Report on Form 10-K for the year ended June 30, 2021, which contains our audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the fiscal year ended June 30, 2021. The interim results for the period ended September 30, 2021 are not necessarily indicative of the results for the full fiscal year. |
Principles of consolidation | Principles of consolidation The unaudited condensed consolidated financial statements include the accounts of our Company, its wholly-owned subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), Lemon Glow Company, Inc., a California corporation (“Lemon Glow”), and its majority owned subsidiary, NUG Avenue, Inc., a California corporation (“Nug Avenue”), as well as Indigo Dye Group Corp., a variable interest entity (“VIE”). All significant intercompany transactions and balances have been eliminated in consolidation. |
Going concern | Going concern The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required. Our unaudited condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Management endeavors to increase revenue-generating operations. While the Company’s priority is on generating cash from operations, management also seek to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced, and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock. |
Business combinations | Business combinations The Company applies the provisions of Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. The Company used third party valuation company to determine the assets acquired and liabilities assumed with the corresponding offset to goodwill. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. |
Revenue recognition | Revenue recognition We recognize revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC’’) No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer. |
Property and equipment | Property and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 5 Furniture and equipment 7 Vehicles 5 Leasehold improvements 30 Building 31.5 Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, there was $ 0 43,800 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) |
Leases | Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Intangible assets represent purchased intangible assets including developed technology and in-process research and development, technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames. Purchased finite-lived intangible assets are capitalized and amortized over their estimated useful lives. Technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement, or estimated useful life. We capitalize cannabis cultivation license acquired as part of a business combination. |
Stock based compensation | Stock based compensation Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk-free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. |
Earnings (Loss) per share | Earnings ( Loss) per share We calculate basic earnings (loss) per share (“EPS”) by dividing our net income (loss) by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income or net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive. |
Fair value of financial instruments | Fair value of financial instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the three months ended September 30, 2021. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 2. Summary of Significant Accounting Policies (continued) |
Derivative instruments | Derivative instruments The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. |
Segment Reporting | Segment Reporting FASB ASC Topic 280, “Segment Reporting’’, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in three industry segments – (1) paper and paper-based products such as paper cups, cup lids, food containers, etc., which accounts for approx. 38% of the Company’s revenues as of September 30, 2021; (2) Cannabis products delivery service and sales, which accounts for approx. 62% of the Company’s total revenues as of September 30, 2021. A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for September 30, 2021 and 2020 is as follows: Schedule of Segment Operating Income Three months ended September 30, 2021 September 30, Segment operating income Paper and paper-based products $ 438,543 $ 574,970 Cannabis products delivery 730,237 1,571,356 Total operating income $ 1,168,781 $ 2,146,326 |
New accounting pronouncements | New accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will be effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. We are still evaluating the impact this guidance will have on our consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The Company have adopted this ASU on the consolidated financial statements in the year ended June 30, 2021. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and three months ended September 30, 2021. In August 2020, the FASB issued ASU 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) ASU 2020-06 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements September 30, 2021 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 5 Furniture and equipment 7 Vehicles 5 Leasehold improvements 30 Building 31.5 |
Schedule of Segment Operating Income | A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for September 30, 2021 and 2020 is as follows: Schedule of Segment Operating Income Three months ended September 30, 2021 September 30, Segment operating income Paper and paper-based products $ 438,543 $ 574,970 Cannabis products delivery 730,237 1,571,356 Total operating income $ 1,168,781 $ 2,146,326 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | As of September 30, 2021 and June 30, 2021, other current assets consisted of the following: Schedule of Other Current Assets For the period ended September 30, June 30, Prepaid Deposit $ 141,776 $ 113,988 Prepaid Inventory 49,433 — Prepaid Expenses 19,673 35,590 Undeposited Funds 7,535 — Other — 32,879 Total: $ 218,417 $ 182,457 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | As of September 30, 2021 and June 30, 2021, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment Fixed Assets September 30, June 30, Office and equipment $ 820,149 $ 820,149 Motor vehicles 165,579 166,079 Land 2,554,767 1,922,376 Building 197,609 — Leasehold Improvement 365,620 365,620 Total 4,103,725 3,274,224 Less: accumulated depreciation (566,523 ) (524,884 ) Property, Plant and Equipment, net $ 3,537,202 $ 2,749,340 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Schedule of Accounts Payable and Accrued Liabilities September 30, June 30, Accounts payable $ 1,569,139 $ 1,464,692 Accrued liabilities 354,213 310,528 Contingent liabilities 262,077 283,619 Total accounts payable and accrued liabilities: $ 2,185,429 $ 2,058,839 |
Derivative liabilities (Tables)
Derivative liabilities (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Derivative Liabilities | |
Schedule of Binomial Model Assumptions Inputs | Schedule of Binomial Model Assumptions Inputs June 30, Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % September 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.05 0.53 % Expected Volatility 127 234 % |
Schedule of Fair Value of Derivative | Fair value of the derivative is summarized as below: Schedule of Fair Value of Derivative Beginning Balance, June 30, 2021 $ 2,217,361 Additions $ — Mark to Market $ (325,234 ) Cancellation of Derivative Liabilities Due to Cash Repayment $ — Reclassification to APIC Due to Conversions $ (576,214 ) Ending Balance, September 30, 2021 1,315,913 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Supplemental Disclosures Related to Operating Lease | Schedule of Supplemental Disclosures Related to Operating Lease Three Months Ended September 30, 2021 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 77,231 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three months ended September 30, 2021 $ 58,639 Remaining lease term – operating leases (in years) 2.5 Average discount rate – operating leases 10 % The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Short-term right-of-use assets $ 249,464 Long-term right-of-use assets $ 421,557 Total operating lease assets $ 671,021 Short-term operating lease liabilities $ 246,682 Long-term operating lease liabilities $ 456,755 Total operating lease liabilities $ 703,437 |
Schedule of Maturities of Lease Liabilities | Maturities of the Company’s lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Operating Period ending September 30, 2021 Lease 2022 $ 307,405 2023 234,925 2024 172,465 2025 103,476 Total lease payments 818,270 Less: Imputed interest/present value discount (114,833 ) Present value of lease liabilities $ 703,437 |
Nature of Business (Details Nar
Nature of Business (Details Narrative) - USD ($) | Feb. 08, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Oct. 02, 2020 |
Nonconsolidated affiliate - equity method | $ 396,930 | $ 441,407 | ||||
Loss from equity method investment | 44,477 | $ 123,412 | ||||
Nug Avenue, Inc. [Member] | ||||||
Percentage of VIE | 70.00% | |||||
Indigo Dye Group Corp. [Member] | ||||||
Nonconsolidated affiliate - equity method | $ 396,930 | $ 59,370 | ||||
Percentage of outstanding equity | 32.00% | |||||
Indigo Dye Group Corp. [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||
Nonconsolidated affiliate - equity method | $ 505,449 | |||||
Percentage of outstanding equity | 40.00% |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives of Property and Equipment (Details) | 3 Months Ended |
Sep. 30, 2021 | |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 30 years |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 31 years 6 months |
Schedule of Segment Operating I
Schedule of Segment Operating Income (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Product Information [Line Items] | ||
Total operating income | $ (1,252,601) | $ (870,151) |
Operating Segments [Member] | ||
Product Information [Line Items] | ||
Total operating income | 1,168,781 | 2,146,326 |
Paper And Paper Based Products [Member] | Operating Segments [Member] | ||
Product Information [Line Items] | ||
Total operating income | 438,543 | 574,970 |
Cannabis Products Delivery [Member] | Operating Segments [Member] | ||
Product Information [Line Items] | ||
Total operating income | $ 730,237 | $ 1,571,356 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Impairment Effects on Earnings Per Share [Line Items] | |||
Impairment of property, plant and equipment | $ 44,477 | ||
Impairment of long-lived assets | 0 | 43,800 | |
Property, Plant and Equipment [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Impairment of property, plant and equipment | $ 0 | $ 0 | $ 0 |
Concentration (Details Narrativ
Concentration (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | ||
Net revenue | $ 1,168,781 | $ 2,146,326 |
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Suppliers One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 25.50% | |
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Suppliers Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 16.20% |
VIE (Details Narrative)
VIE (Details Narrative) | Oct. 02, 2020 | Feb. 07, 2020USD ($) | Sep. 30, 2021USD ($) |
Indigo Dye Group Corp. [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Ownership percentage by noncontrolling interest | 32.00% | ||
Equity investment | $ 564,819 | ||
Indigo Dye Group Corp. [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Terms of arrangements | the Company continues to hold approximately 32% of the ownership of Indigo but ceased to have a controlling interest in the partnership and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting. | The value used for this transaction is $1,750,000 and each percentage (1%) of the company is worth $17,500. In the event that the Company is not able to make a payment of $58,333 in any month, it will have 90 days to cure the default. | |
Option to purchase an additional VIE interest | 0.30 | ||
Proceeds the option to acquire additional interest percentage | 30.00% | ||
Indigo Dye Group Corp. [Member] | Indigo Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Investment | $ 700,000 | ||
Terms of arrangements | The Investment shall be made in twelve monthly equal installments of $58,333 with the acceleration of the payment schedule possible depending on business growth, cash flow needs and capital availability. | ||
Monthly installments amount | $ 58,333 |
Noncontrolling Interest and D_2
Noncontrolling Interest and Deconsolidation of VIE (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Oct. 02, 2020 | |
Nonconsolidated affiliate - equity method | $ 396,930 | $ 441,407 | |||
Net assets value | 18,741,650 | 19,432,951 | |||
Gain on deconsolidation | 313,928 | ||||
Loss from equity method investment | 44,477 | $ 123,412 | |||
Indigo Dye Group [Member] | |||||
Percentage of outstanding equity | 29.00% | ||||
Indigo Dye Group Corp. [Member] | |||||
Percentage of outstanding equity | 32.00% | ||||
Proceeds the option to acquire additional interest percentage | 30.00% | ||||
Nonconsolidated affiliate - equity method | $ 396,930 | $ 59,370 | |||
Indigo Dye Group Corp. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Net assets value | $ 326,812 | ||||
Indigo Dye Group Corp. [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||
Percentage of outstanding equity | 40.00% | ||||
Nonconsolidated affiliate - equity method | $ 505,449 |
Legal Proceedings (Details Narr
Legal Proceedings (Details Narrative) - USD ($) | Feb. 21, 2017 | Sep. 30, 2021 | Jun. 30, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Litigation settlement, amount | $ 227,000 | ||
Convertible notes payable | $ 1,224,095 | $ 1,439,116 | |
Third parties [Member] | Two Notes [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Convertible notes payable | 80,000 | $ 80,000 | |
Accrued interest | $ 227,000 |
Cash (Details Narrative)
Cash (Details Narrative) | Sep. 30, 2021USD ($) |
Cash and Cash Equivalents [Abstract] | |
Cash, FDIC insured amount | $ 250,000 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Credit Loss [Abstract] | ||
Accounts receivable, net | $ 656,809 | $ 435,598 |
Allowance for doubtful accounts | $ 581,039 | $ 259,761 |
Loans Receivable (Details Narra
Loans Receivable (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Receivables [Abstract] | ||
Financing Receivable, after Allowance for Credit Loss | $ 196,000 | $ 196,000 |
Financing Receivable, after Allowance for Credit Loss, Current | 0 | |
Financing Receivable, after Allowance for Credit Loss, Noncurrent | $ 196,000 | $ 196,000 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Inventory, Net | $ 609,457 | $ 441,582 |
Inventory Valuation Reserves | $ 0 | $ 0 |
Schedule of Other Current Asset
Schedule of Other Current Assets (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid Deposit | $ 141,776 | $ 113,988 |
Prepaid Inventory | 49,433 | |
Prepaid Expenses | 19,673 | 35,590 |
Undeposited Funds | 7,535 | |
Other | 32,879 | |
Total: | $ 218,417 | $ 182,457 |
Intangible Asset (Details Narra
Intangible Asset (Details Narrative) - USD ($) | Aug. 02, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 1,533 | $ 1,400 | ||
Finite-lived Intangible Assets Acquired | $ 10,648,861 | |||
Finite-Lived Intangible Asset, Useful Life | 9 years | |||
Intellectual Property [Member] | Wagner Bartosch, Inc [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Stock Issued During Period, Value, Purchase of Assets | $ 75,000 | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 10 years |
Goodwill (Details Narrative)
Goodwill (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 757,648 | $ 757,648 |
Schedule of Property Plant and
Schedule of Property Plant and Equipment (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 4,103,725 | $ 3,274,224 |
Less: accumulated depreciation | (566,523) | (524,884) |
Property, Plant and Equipment, net | 3,537,202 | 2,749,340 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 820,149 | 820,149 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 165,579 | 166,079 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,554,767 | 1,922,376 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 197,609 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 365,620 | $ 365,620 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Impairment Effects on Earnings Per Share [Line Items] | |||
Depreciation, Depletion and Amortization | $ 41,639 | $ 105,982 | |
Impairment for property, plant, and equipment | 44,477 | ||
Property, Plant and Equipment [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Impairment for property, plant, and equipment | $ 0 | $ 0 | $ 0 |
Equity Method Investments in _2
Equity Method Investments in Affiliates (Details Narrative) - USD ($) | Oct. 03, 2020 | Oct. 02, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Restructuring Cost and Reserve [Line Items] | ||||||
Equity method investment | $ 396,930 | $ 441,407 | ||||
Indigo Dye Group [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Ownership percentage | 32.00% | 29.00% | ||||
Terms of arrangements | As of October 1, 2020, the Company ceased to have control over the day-to-day business of Indigo and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting | |||||
Variable interest, percentage | 40.00% | |||||
Impaired financing receivable, recorded investment | $ 43,800 | |||||
Equity method investment | $ 396,930 | |||||
Loss from equity method investment | $ 44,477 |
Unrealized Gain on Securities (
Unrealized Gain on Securities (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Oct. 31, 2019 | Sep. 30, 2021 | Jun. 30, 2021 | |
[custom:UnrealizedGainLossesOnSecurities] | $ 809,804 | $ 1,451,922 | |
Share Exchange Agreement [Member] | iPower Inc [Member] | |||
Equity interest, percentage | 100.00% | ||
Business combination, consideration transferred | $ 870,000 | ||
Promissory note | $ 7,130,000 | ||
Share Exchange Agreement [Member] | iPower Inc [Member] | Common Stock [Member] | |||
Shares issue, shares | 650,000 | ||
Share Exchange Agreement [Member] | iPower Inc [Member] | Series B Preferred Stock [Member] | |||
Shares issue, shares | 3,500,000 | ||
Rescission Agreement [Member] | iPower Inc [Member] | |||
Shares repurchased during the period | 102,248 | ||
Stock repurchased, fair value | $ 1,451,922 | ||
Rescission Agreement [Member] | iPower Inc [Member] | Post Forward Split [Member] | |||
Shares repurchased during the period | 204,496 |
Unearned Revenues (Details Narr
Unearned Revenues (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Unearned revenue | $ 20,265 | $ 0 |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 1,569,139 | $ 1,464,692 |
Accrued liabilities | 354,213 | 310,528 |
Contingent liabilities | 262,077 | 283,619 |
Total accounts payable and accrued liabilities: | $ 2,185,429 | $ 2,058,839 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Payables and Accruals [Abstract] | ||
Accounts Payable and Accrued Liabilities, Current | $ 2,185,429 | $ 2,058,839 |
Other Payables (Details Narrati
Other Payables (Details Narrative) | Sep. 30, 2021USD ($)Integer | Jun. 30, 2021USD ($) |
Other payables | $ 697,813 | $ 750,485 |
Number of credit cards | Integer | 8 | |
American Express [Member] | ||
Credit card limit amount | $ 0 | |
Seven Credit Card [Member] | ||
Credit card limit amount | $ 85,000 | |
Seven Credit Card [Member] | Minimum [Member] | ||
Credit cards interest rates percentage | 11.24% | |
Seven Credit Card [Member] | Maximum [Member] | ||
Credit cards interest rates percentage | 29.99% |
Customer Deposits (Details Narr
Customer Deposits (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Customer Deposits | ||
Deposit Assets | $ 861,906 | $ 751,919 |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) | Jun. 14, 2021USD ($)Integer$ / shares | Feb. 08, 2021USD ($)Integer | Nov. 10, 2020USD ($)Integer | Oct. 13, 2020USD ($)Integer$ / shares | Oct. 08, 2020USD ($)Integer$ / shares | Sep. 10, 2020USD ($)Integershares | Sep. 08, 2020USD ($)Integer$ / shares | Nov. 02, 2019USD ($)Integer$ / shares | Dec. 03, 2018USD ($)$ / shares | Nov. 16, 2018USD ($)$ / shares | Dec. 21, 2012USD ($) | Sep. 18, 2012USD ($) | Aug. 24, 2012USD ($) | Sep. 24, 2020USD ($)Integer$ / shares | Oct. 31, 2019USD ($)Integer$ / shares | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) |
Short-term Debt [Line Items] | |||||||||||||||||
Convertible notes payable, net, current | $ 1,224,095 | $ 1,439,116 | |||||||||||||||
Convertible debt, debt discount | $ 258,507 | $ 391,086 | |||||||||||||||
Convertible Note One [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 25,000 | ||||||||||||||||
Debt instrument term | 6 months | ||||||||||||||||
Debt instrument interest rate | 10.00% | ||||||||||||||||
Debt instrument conversion percentage | 25.00% | ||||||||||||||||
Convertible Note Two [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 25,000 | ||||||||||||||||
Debt instrument term | 6 months | ||||||||||||||||
Debt instrument interest rate | 10.00% | ||||||||||||||||
Debt instrument conversion percentage | 25.00% | ||||||||||||||||
Convertible Note Three [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 100,000 | ||||||||||||||||
Debt instrument term | 6 months | ||||||||||||||||
Debt instrument interest rate | 10.00% | ||||||||||||||||
Debt instrument conversion percentage | 25.00% | ||||||||||||||||
Convertible Note Four [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 40,000 | ||||||||||||||||
Debt instrument term | 1 year | ||||||||||||||||
Debt instrument interest rate | 8.00% | ||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.07 | ||||||||||||||||
Convertible Note Five [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 35,000 | ||||||||||||||||
Debt instrument term | 1 year | ||||||||||||||||
Debt instrument interest rate | 8.00% | ||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.07 | ||||||||||||||||
Convertible Note Six [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 139,301 | ||||||||||||||||
Debt instrument term | 360 days | ||||||||||||||||
Debt instrument interest rate | 8.00% | ||||||||||||||||
Debt instrument conversion percentage | 60.00% | ||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.008 | ||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||
Convertible Note Seven [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 100,000 | ||||||||||||||||
Debt instrument term | 360 days | ||||||||||||||||
Debt instrument interest rate | 8.00% | ||||||||||||||||
Debt instrument conversion percentage | 60.00% | ||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.008 | ||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||
Convertible Note Eight [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 110,000 | ||||||||||||||||
Debt instrument term | 180 days | ||||||||||||||||
Debt instrument interest rate | 12.00% | ||||||||||||||||
Debt instrument conversion percentage | 65.00% | ||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | ||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||
Debt instrument original issue discount | $ 10,000 | ||||||||||||||||
Convertible Note Nine [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 227,700 | ||||||||||||||||
Debt instrument term | 360 days | ||||||||||||||||
Debt instrument interest rate | 8.00% | ||||||||||||||||
Debt instrument conversion percentage | 60.00% | ||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||
Debt instrument original issue discount | $ 20,700 | ||||||||||||||||
Legal expense | $ 7,000 | ||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 90,167,551 | ||||||||||||||||
Convertible Note Nine [Member] | Accredited Investor [Member] | Principal Amount [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt conversion, converted amount | $ 117,700 | ||||||||||||||||
Convertible Note Nine [Member] | Accredited Investor [Member] | Accrued Interest [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt conversion, converted amount | $ 7,352 | ||||||||||||||||
Convertible Note Ten [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 212,300 | ||||||||||||||||
Debt instrument term | 180 days | ||||||||||||||||
Debt instrument interest rate | 12.00% | ||||||||||||||||
Debt instrument conversion percentage | 65.00% | ||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | ||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||
Debt instrument original issue discount | $ 19,300 | ||||||||||||||||
Convertible Note Eleven [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 231,000 | ||||||||||||||||
Debt instrument term | 180 days | ||||||||||||||||
Debt instrument interest rate | 12.00% | ||||||||||||||||
Debt instrument conversion percentage | 65.00% | ||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | ||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||
Debt instrument original issue discount | $ 21,000 | ||||||||||||||||
Convertible Note Twelve [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 275,000 | ||||||||||||||||
Debt instrument term | 180 days | ||||||||||||||||
Debt instrument interest rate | 12.00% | ||||||||||||||||
Debt instrument conversion percentage | 65.00% | ||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | ||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||
Debt instrument original issue discount | $ 25,000 | ||||||||||||||||
Convertible Note Thirteen [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 58,300 | ||||||||||||||||
Debt instrument term | 360 days | ||||||||||||||||
Debt instrument interest rate | 8.00% | ||||||||||||||||
Debt instrument conversion percentage | 60.00% | ||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||
Debt instrument original issue discount | $ 5,300 | ||||||||||||||||
Convertible Note Fourteen [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 69,300 | ||||||||||||||||
Debt instrument term | 360 days | ||||||||||||||||
Debt instrument interest rate | 8.00% | ||||||||||||||||
Debt instrument conversion percentage | 60.00% | ||||||||||||||||
Debt instrument trading days | Integer | 20 | ||||||||||||||||
Debt instrument original issue discount | $ 6,300 | ||||||||||||||||
Convertible Note Fifteen [Member] | Accredited Investor [Member] | |||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 300,000 | ||||||||||||||||
Debt instrument term | 3 years | ||||||||||||||||
Debt instrument interest rate | 1.00% | ||||||||||||||||
Debt instrument conversion percentage | 85.00% | ||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.0036 | ||||||||||||||||
Debt instrument trading days | Integer | 5 |
Schedule of Binomial Model Assu
Schedule of Binomial Model Assumptions Inputs (Details) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Measurement Input, Expected Dividend Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | ||
Measurement Input, Expected Term [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input, term | 6 months | 6 months |
Measurement Input, Expected Term [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input, term | 3 years | 3 years |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 0.05 | 0.01 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 0.53 | 0.46 |
Expected Volatility [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 127 | 89 |
Expected Volatility [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 234 | 236 |
Schedule of Fair Value of Deriv
Schedule of Fair Value of Derivative (Details) | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Derivative Liabilities | |
Beginning Balance, June 30, 2021 | $ 2,217,361 |
Additions | |
Mark to Market | (325,234) |
Cancellation of Derivative Liabilities Due to Cash Repayment | |
Reclassification to APIC Due to Conversions | (576,214) |
Ending Balance, September 30, 2021 | $ 1,315,913 |
Derivative liabilities (Details
Derivative liabilities (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Derivative Liabilities | ||
Derivative Liability | $ 1,315,913 | $ 2,217,361 |
Derivative, Loss on Derivative | $ 325,234 | |
Derivative, Gain on Derivative | $ 1,087,485 |
Stock warrants (Details Narrati
Stock warrants (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Feb. 04, 2020 | Sep. 07, 2018 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Fair value of warrant liability | $ 12,753 | $ 21,042 | ||
Settlement Agreement [Member] | Investor [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrant term | 5 years | |||
Fair value of warrant liability | 753 | 1,042 | $ 56,730 | |
Warrant Agreement [Member] | Accredited Investor [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrant term | 5 years | |||
Fair value of warrant liability | $ 12,000 | $ 20,000 | $ 80,000 | |
Warrants exercise price | $ 0.008 | |||
Warrant Agreement [Member] | Accredited Investor [Member] | Maximum [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrants to purchase common stock | 10,000,000 |
Note payable (Details Narrative
Note payable (Details Narrative) - USD ($) | May 12, 2021 | Oct. 16, 2020 | Oct. 31, 2011 | Sep. 30, 2021 | Jun. 30, 2021 | Oct. 06, 2020 | Dec. 20, 2018 | Jun. 15, 2018 | Jan. 23, 2013 |
Promissory Note [Member] | Trustee [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate | 6.00% | ||||||||
Original principal amount | $ 1,390,000 | ||||||||
Outstanding balance | $ 1,373,872 | $ 1,378,222 | |||||||
Debt instrument term | 30 years | ||||||||
Debt instrument, frequency of periodic payment | monthly basis | ||||||||
Debt instrument, periodic payment | $ 8,333 | ||||||||
Promissory Note [Member] | Lemon Glow Shareholders [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate | 5.00% | ||||||||
Original principal amount | $ 3,976,000 | ||||||||
Outstanding balance | 3,556,000 | 3,626,000 | |||||||
Debt instrument term | 36 months | ||||||||
Promissory Note [Member] | Former Employee [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Original principal amount | $ 40,000 | ||||||||
Notes payable related parties current | 0 | 15,427 | |||||||
Promissory Note [Member] | Accredited Investor [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Original principal amount | $ 20,000 | ||||||||
Interest rate per annum | 8.00% | ||||||||
Outstanding balance | 32,041 | 33,047 | |||||||
Promissory Note [Member] | Darryl Kuecker Trustee [Member] | Trustee [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Undivided interest of related party | 36.00% | ||||||||
Debt instrument, periodic payment | 3,000 | ||||||||
Promissory Note [Member] | Shirley Ann Hunt [Member] | Trustee [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Undivided interest of related party | 64.00% | ||||||||
Debt instrument, periodic payment | $ 5,333 | ||||||||
Revolving Credit Facility [Member] | HSBC [Member] | UNITED STATES | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit maximum borrowing capacity | $ 150,000 | ||||||||
Debt instrument basis spread on variable rate | 0.25% | ||||||||
Interest rate | 5.50% | ||||||||
Line of credit covenant terms | In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate | ||||||||
Line of credit | $ 25,982 | $ 25,982 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | |||
Nov. 21, 2016 | Jan. 23, 2013 | Sep. 30, 2021 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
Loan payable - related parties, current | $ 46,871 | $ 163,831 | ||
Loan payable - related parties, current | 46,871 | 163,831 | ||
Loan payable - related parties, current | 46,871 | 179,258 | ||
SWC Group, Inc. [Member] | Employee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from loan | $ 40,000 | |||
Loan payable - related parties, current | 0 | 15,427 | ||
SWC Group, Inc. [Member] | Employee One [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loan payable - related parties, current | 0 | 49,447 | ||
SWC Group, Inc. [Member] | Employee Two [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loan payable - related parties, current | 0 | 83,275 | ||
Debt instrument due date | Sep. 30, 2017 | |||
Lemon Glow [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loan payable - related parties, current | $ 0 | $ 3,000 |
Loans payable (Details Narrativ
Loans payable (Details Narrative) - USD ($) | Aug. 04, 2021 | Jul. 27, 2021 | Mar. 24, 2021 | Feb. 15, 2021 | Jul. 28, 2020 | Oct. 01, 2017 | Jul. 02, 2012 | Sep. 30, 2021 | Jun. 30, 2021 | Jan. 25, 2021 | Jun. 30, 2019 |
Outstanding loan balance | $ 1,484,162 | $ 701,193 | |||||||||
SWC Group, Inc. [Member] | Equipment Loan Agreement [Member] | |||||||||||
Maturity date | Jun. 21, 2024 | ||||||||||
Outstanding balance | 16,805 | 16,805 | |||||||||
Monthly payment | $ 648 | ||||||||||
John Deere Financial [Member] | |||||||||||
Original principal amount | $ 69,457 | ||||||||||
Interest rate per annum | 2.85% | ||||||||||
Outstanding balance | 61,010 | 65,726 | |||||||||
Debt instrument, term | 60 months | ||||||||||
Coastline Lending Group [Member] | |||||||||||
Original principal amount | $ 490,000 | ||||||||||
Maturity date | Aug. 14, 2024 | ||||||||||
Interest rate per annum | 8.50% | ||||||||||
Debt instrument, term | 36 months | ||||||||||
Balloon payment | $ 3,471 | ||||||||||
Outstanding loan balance | $ 490,000 | ||||||||||
Promissory Note [Member] | Greater Asia Technology Limited [Member] | |||||||||||
Original principal amount | $ 100,000 | ||||||||||
Maturity date | Jun. 30, 2018 | ||||||||||
Interest rate per annum | 33.33% | ||||||||||
Outstanding balance | 49,541 | 49,541 | |||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | |||||||||||
Original principal amount | $ 375,000 | ||||||||||
Outstanding balance | 100,000 | 100,000 | |||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | Minimum [Member] | |||||||||||
Interest rate per annum | 40.00% | ||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | Maximum [Member] | |||||||||||
Interest rate per annum | 50.00% | ||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | CARES Act [Member] | |||||||||||
Original principal amount | $ 500,000 | $ 159,900 | |||||||||
Interest rate per annum | 3.75% | ||||||||||
Payment for rent | $ 731 | ||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | Minimum [Member] | CARES Act [Member] | |||||||||||
Payment for rent | 731 | ||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | Maximum [Member] | CARES Act [Member] | |||||||||||
Payment for rent | $ 2,527 | ||||||||||
January 2021 PPP Note [Member] | Bank of America [Member] | CARES Act [Member] | |||||||||||
Original principal amount | $ 96,595 | ||||||||||
Interest rate per annum | 1.00% | ||||||||||
Promissory Notes [Member] | Manuel Rivera [Member] | |||||||||||
Original principal amount | $ 100,000 | ||||||||||
Maturity date | Sep. 15, 2021 | ||||||||||
Outstanding balance | $ 100,000 | $ 100,000 | |||||||||
Monthly interest, amount | $ 3,500 | ||||||||||
Debt instrument, term | 7 months | ||||||||||
Debt instrument, description | The Company shall pay the investor a fee of $70,000 within 45 days of its first harvest. |
Loans Payable _ Related Parti_2
Loans Payable – Related Parties (Details Narrative) - USD ($) | 1 Months Ended | ||
Nov. 21, 2016 | Sep. 30, 2021 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Loan payable - related parties, current | $ 46,871 | $ 163,831 | |
Employee [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Outstanding balance | 0 | 49,447 | |
Former Independent Consultant [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Outstanding balance | 0 | 83,275 | |
Maturity date | Sep. 30, 2017 | ||
Lemon Glow [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Outstanding balance | 0 | 3,000 | |
LMK Capital LLC [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Loan payable - related parties, current | 46,871 | 26,452 | |
Loan receivables - related party, current | $ 0 | $ 0 |
Shares to Be Issued (Details Na
Shares to Be Issued (Details Narrative) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Consulting Service Agreement and Employment Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Stock to be issued | $ 239,577 | $ 138,077 |
Consulting Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Stock to be issued | 36,500 | |
Employment Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Stock to be issued | $ 203,077 |
Stockholder_s Equity (Details N
Stockholder’s Equity (Details Narrative) - USD ($) | 3 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Apr. 22, 2020 | Apr. 21, 2020 | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,010,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Common stock, shares issued | 8,438,707,554 | 7,402,535,677 | ||
Common stock, shares outstanding | 8,438,707,554 | 7,402,535,677 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Debt conversion, converted instrument, shares issued | 375,600,448 | |||
Debt conversion, converted amount | $ 385,266 | |||
Common Stock [Member] | Lemon Glow Acquisition [Member] | ||||
Class of Stock [Line Items] | ||||
Stock issued for acquisition, shares | 660,571,429 | |||
Stock issued for acquisition, value | $ 1,849,600 | |||
Preferred Class B [Member] | Lemon Glow Acquisition [Member] | ||||
Class of Stock [Line Items] | ||||
Stock issued for acquisition, shares | 2,000,000 | |||
Stock issued for acquisition, value | $ 5,600,000 | |||
Series B Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 2,999,999 | 2,999,999 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, shares issued | 2,541,500 | 541,500 | ||
Preferred stock, shares outstanding | 2,541,500 | 541,500 | ||
Series C Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 1 | 1 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, shares issued | 1 | 1 | ||
Preferred stock, shares outstanding | 1 | 1 |
Schedule of Supplemental Disclo
Schedule of Supplemental Disclosures Related to Operating Lease (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 58,639 | |
Remaining lease term - operating leases (in years) | 2 years 6 months | |
Average discount rate - operating leases | 10.00% | |
Short-term Right-of-use assets | $ 249,464 | $ 243,406 |
Long-term Right-of-use assets | 421,557 | 486,253 |
Total operating lease assets | 671,021 | |
Short-term operating lease liabilities | 246,682 | 239,521 |
Long-term operating lease liabilities | 456,755 | $ 524,149 |
Total operating lease liabilities | 703,437 | |
General and Administrative Expense [Member] | ||
Loss Contingencies [Line Items] | ||
Operating lease cost | $ 77,231 |
Schedule of Maturities of Lease
Schedule of Maturities of Lease Liabilities (Details) | Sep. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 307,405 |
2023 | 234,925 |
2024 | 172,465 |
2025 | 103,476 |
Total lease payments | 818,270 |
Less: Imputed interest/present value discount | (114,833) |
Present value of lease liabilities | $ 703,437 |
Commitments and contingencies_2
Commitments and contingencies (Details Narrative) | Feb. 02, 2021 | Feb. 23, 2018USD ($)ft² | Sep. 30, 2021USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease commitment | $ 818,270 | ||
Lease Agreement [Member] | Magnolia Extracts LLC [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease payment, description | The lease was set to commence on February 1, 2021. The lease payment shall equal $10,000 per month and the lease term is on month-by-month basis. Parties have agreed that the first month’s rent payment shall equal $7,000 and the Company owed the landlord a refundable security deposit of $20,000 within 10 days of the commencement date. | ||
Lease Agreement [Member] | Building [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease term | 5 years | ||
Monthly rent | $ 11,770 | ||
Yearly increase in rent percentage | 3.00% | ||
Lease commitment | $ 737,367 | ||
Lease Agreement [Member] | Warehouse [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Monthly rent | $ 13,022 | ||
Area under lease | ft² | 11,627 |
Subsequent events (Details Narr
Subsequent events (Details Narrative) - Subsequent Event [Member] - USD ($) | Nov. 12, 2021 | Oct. 28, 2021 | Oct. 13, 2021 |
Subsequent Event [Line Items] | |||
Stock to be issued for cash, shares | 214,285,714 | ||
Stock to be issued for cash, value | $ 150,000 | ||
Stock Subscription Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Stock to be issued for cash, shares | 169,999,999 | 200,000,000 | |
Stock to be issued for cash, value | $ 204,000 | $ 240,000 |